STURGIS, S.D. – The Sturgis City Council met for their second meeting in March Monday night and got an update from City Administrator Aaron Jordan on a CARES Act dilemma that cost the city nearly $23,000.
The City received the COVID funding in September of 2021 and were asked to report on how the funds were being used.
The Sturgis Ambulance Director reported sending reports as per the Health Resources and Service Administration’s guide for three fiscal quarters.
However, in February of 2024, the agency notified Sturgis they had not received reports on the use of the funds. The city’s ambulance director told city officials HRSA reported a discrepancy in the reported wages, and she then got updated information and sent it on to the agency.
Then in April, the HRSA contacted the city again saying they owe $16,636.
The city reported filing a dispute to the claim in December of 2024 along with all relevant wages and it was believed all the necessary steps had been completed to satisfy the HRSA’s requirements.
But, in February, the city received notice the amount owed was still due, and with added fees and interest, the total was now $22,803.
City Administrator Jordan says the city mailed a check to satisfy the debt on March 5 because the Treasury Department was claiming payments from Veterans Affairs and Medicare to the ambulance service to satisfy the debt.
Jordan says it sure looked like they had provided all the necessary information, and there was no one person to blame.
Also Monday night, the council approved signing a professional services agreement with Caselle to help with bank reconciliation catch-up work as well as a resolution establishing the Municipal Utility Rates for 2025.
The Mayor’s 2025 budget recommends to increase water rates by 3% and all other utility rates by 3% for residential. Commercial rates will increase by 5%.
Public Works Director Rick Bush explains the reasoning behind the increased rates.
Bush apologized for getting the annual rate resolution to the council late, citing late work on the 2025 budget and not getting it done for a January hearing.
